Kazakhstan passes a law allowing bitcoin mining
In the industry, regulations are becoming more and more important. Governments have been working to safeguard their citizens as the demand for cryptocurrencies soars. Kazakhstan has been regulating the sector after gaining notoriety in the cryptocurrency community for hosting Bitcoin miners. The Kazakh government made headlines for its most recent crypto-mining measures after passing five bills relating to cryptocurrencies.
It has just come to light that Kazakhstan's legislature approved the "On Digital Assets of the Republic of Kazakhstan" crypto mining measures. Four measures that regulate Bitcoin mining in the area received the go-ahead during the lower hours of the Kazakhstani Parliament, known as Mäjilis.
Ekaterina Smyshlyaeva, a member of the Majilis' Committee on Economic Reform and Regional Development, commented on the most recent bill:
The measure "introduces specific standards for mining pools in terms of the placement of their server capacities in Kazakhstan and compliance with information security rules, in addition to mandatory accreditation."
Here are the effects of the bill on Bitcoin mining.
The bill stipulates that miners must only buy extra electricity from the public power grid. In addition, miners will have access to the Kazakhstan Electricity and Power Market Operator [KOREM] exchange to purchase electricity. Electricity would be sold in an auction format, thus not everyone would be able to purchase it. As a result, the sale will go to the highest bidder.
It is also recommended to divide mining permits into two categories. The first category consists of digital miners in Kazakhstan who have the required infrastructure, such as data centers with the appropriate hardware, setting, and security. The second class of digital miners rents cells in data centers without claiming an energy allotment.
The local tax on Bitcoin mining has changed multiple times during the past few months. The most recent measure has resulted in a variety of changes, ranging from the Kazakh president's attempt to raise taxes on cryptocurrency mining. It should be mentioned that starting in 2024, Bitcoin miners will be regarded as official taxpayers.
For instance, miners and mining pools would be subject to a corporate income tax. The most recent plan also included corporate income tax on crypto exchanges and value-added tax on anyone who interact in cryptocurrencies.
Article Credit: Watcher.Guru
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